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Are hybrids better for highway or city driving?

I've been trying to find an answer on the forum, but I have found differing viewpoints regarding if hybrids are better suited for highway or city driving? I am not a commuter, but would anticipate most trips would include highway driving as I live in the San Francisco Bay Area with friends about 30 minutes or more away. I run errands more locally so that would be more of stop and go city type driving. So is it worth the extra cost to get a hybrid vehicle?

Michelle,
Hybrids are better

Michelle,
Hybrids are better for both city and highway driving than their pure Internal Combustion Engine (ICE) powered counterparts. The mileage increase for city driving is generally a bit more than for highway driving, especially with the truck shaped hybrids (FEH, HiHy, Yukon) but you'll win a lot on either. I'd propose that the main decision point would be how much driving of either type you do. If you drive over 30 miles per day, then I'd say there would be no doubt that a hybrid was worth the cost. If less, then it probably depends on:
1) how much you spend on gas per year
2) how much you fear you might spend per year as gas prices increase.
The 'hybrid premium' isn't as much as it used to be and, if you shop around, bargain, and wait, you can probably get a hybrid for not too much more than the non-hybrid equivalent, especially if you go with those that are a bit less popular (Civic instead of Prius). If you choose a car for its image (think Mercedes, BMW, Lexus, etc), then clearly, a hybrid is a cheap way to make a huge statement.
Most of the folks here are probably a bit biased of course. My recommendation, of course, is that if you're happy with whatever you're driving today, you should wait until better hybrids come out in a few years. Today's hybrids offer minimal improvements in fuel economy compared with what the technology can deliver, however, the manufacturers are not rushing to improve as they continue to milk the ones that are selling today.
Its pretty likely that your current car will be cheaper to operate than a new one just because you've already made payments on it.

Depends on the hybrid

Depends on the hybrid system. I have noticed on our Altima (NAH), with the Toyota design, that stop and go driving is not its strength, because it takes a light foot when starting out if you want to remain in electric (EV) mode. Most people don't have the patience, and the people behind you really don't. However, I have learned that after getting up to speed, I can keep it in EV mode up to 40mph and tool around town that way. I'm sure it would work well in traffic too, but it's my wife's daily driver, so I haven't had that opportunity to test it. Also in SF, the ICE will kick in when you start on hills, so the Honda system might be better for you.

A hybrid will change your driving habits as well, because you anticipate more, and "coast" in EV mode as much as possible.

With the $2350 tax credit and desperation of car dealers, our cost was what we considered a competitive price with a traditional Altima - priced between the 2.5 and 3.5 models. We paid $24300, ordered in our color choice with convenience pkg and floor mats, and had a $1250 rebate as well, so our net price was $20,700.